EMT Practice Test

1. Question Content...

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Question1: Which of the following should be adopted to minimise the conflict between parties in commercial negotiation?

Question2: Katie is preparing a negotiation with a strategic supplier. Through deep market analysis, she realises that her company and the supplier have equal bargaining power. Via regular communication, Katie knows that both parties are arguing on amount of liquidated damages and neither party shall concede all of their requirements but some are negotiable. Katie and her counterpart from supplying company still desire a long-term relationship and hope that the meeting between them will be a solution for current situation. Which of the following isthe most appropriate approach that Katie should adopt to achieve the above outcome?

Question3: Which of the following is considered a weakness of a 'dealer' style negotiator?

Question4: A procurement professional is preparing for anegotiation with supplier. She is setting targets for price which her company is seeking to achieve. Which of the following acronyms can help her identify limits before engaging in the negotiation?

Question5: Which of the following is a disadvantage of absorption costing method?

Question6: IHL has beensupplying to XYZ Ltd for months. XYZ Ltd procurement manager Diana realises that the IHL's input prices are dropping and this is a good time to re-negotiate the price of the contract. She invites IHL representative to XYZ headquarter to make a bargain on the current price. At the opening stage of the negotiation, Diana requests a 10% reduction in price with an increase in volume purchased.
Is Diana's action appropriate in the opening phase?

Question7: Before engaging in a negotiation with a supplier of rechargeable lights, procurement team tries to visualise the breakdown of supplier's costs to calculate its break-even point. They estimate that total fixed expenses related to rechargeableelectric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. The supplier charges its customer $180 per unit. Within its current capacity, this supplier will make a profit at which of the following?

Question8: Which of the following are rules of attentive listening? Select TWO that apply.

Question9: Which of the following is the internal factor that is taken intoprice of a product?

Question10: Ma Bell was the sole provider of landline telephoneservice to most of the US in 1980s. This is an example of...?

Question11: In which of the following costing methods, overhead costs are applied in proportion to production volume?

Question12: In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the others to buy intoinfluencer's ideas?

Question13: After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers.Which of the following will be the objective of XYZ procurement team in this negotiation?

Question14: How contribution is calculated in break-even analysis?

Question15: Personal power is only used in distributive approach. Is this statement true?

Question16: Which of the following is most likely a consequence of falling interest rate?

Question17: Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract. Is this statement true?

Question18: Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

Question19: Which of the following is the true statement?

Question20: In a commercial negotiation,a procurement professional believe that the larger the order quantity from buyer, the lower the supplier's average costs. Is this assumption true?

Question21: In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares inresponse to market conditions. Dynamics pricing is based on which costing method?

Question22: At which stage in a negotiation would questions be asked to obtain missing information?

Question23: A senior buyer analyses the supply market and he realises that his organisation is treated asExploit according to supplier's perspective model. What does he need to do?

Question24: Which of the following is the first step in the development of negotiation strategies?

Question25: Where can we find the data on macroeconomics?
1. From trade journal
2. From supplier's marketing catalogue
3. From stock exchange market
4. From government's statistics

Question26: Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.

Question27: A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

Question28: The trust is built based on the other party's professional qualifications or proven or certified technical capability or experience is known as...?

Question29: When is the best time for buyer to propose the negotiation agenda to potential supplier?

Question30: An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

Question31: Should a buyer use closed questions in a negotiation?

Question32: All of the following shift the supply of watchesto the right except...?

Question33: Cost and price analysis is very important for buyers when they are preparing for a negotiation with supplier.
Which of the following is a benefit of knowing supplier's fixed costs?

Question34: A supplier's mark-up on all products is 25%. Supplier's profit margin is...?

Question35: Which ofthe following is a true statement regarding macroeconomic factors and their potential impact on negotiations?

Question36: Can a party gain huge advantages innegotiation from setting room layout?

Question37: When is the best time in procurement process in which procurement should get involved so that the cost-saving opportunities are the greatest?

Question38: XYZ Ltd is importing goods from overseas. They prefer to pay theirsupplier in their own currency. Which of the following is a true statement?

Question39: According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply.

Question40: Which of the following will help to indicate personality preferences in four dimensions?

Question41: Which of the following is considered a strength of a 'logical' style negotiator?

Question42: A buying organisation with a low spend but the reputation for paying on-time. In order to increase buyer's leverage in negotiation with suppliers, which of the following should be a priority of this buyer?

Question43: 'What specific tests do you carry out to ensure quality is achieved?' This is an example of which type of negotiation question?

Question44: According to Dr. Mari Sako, which of the following is potentially the weakest trust to be built?

Question45: Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply

Question46: XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, ormay not, be better than the one it is currently paying. To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation?

Question47: An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons whynegotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

Question48: Which of the following are intangible values created by trust in business relationships? Select TWO that apply.

Question49: A procurement professional is preparing for anegotiation with supplier. She is setting targets for price which her company is seeking to achieve. Which of the following acronyms can help her identify limits before engaging in the negotiation?

Question50: Which of the following is the most appropriate pricing arrangement in contracts where major inputs are commodities?

Question51: Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.